Photo: William Duma in Parliament
The Wafi-Golpu Gold Mine project in Bulolo district of Morobe Province is expected to become a key economic driver for the Ramu 2 Hydro project, which will span the Eastern Highlands and Morobe provinces. During a recent parliamentary session, State Enterprise Minister William Duma gave this assurance in response to questions from Kainantu MP William Hagahuno:
"They (Kumul Consolidated Holdings Limited) on behalf of the PNG Power and Ramu 2 Hydro project developer) will then be negotiating with the Wafi-Golpu Mine so that they sign an off-grid agreement so that they underpin the economics of this project," he said.
"PNG Power is owned by this country and it is important that both sides of this house (Parliament) support this project."
Duma emphasised the importance of both sides of parliament supporting the project, as PNG Power is owned by the country. He noted that:
"It is a project where the Eastern Highlands provincial government and the landowners have allowed PNG Power to supply power from Yonki Hydro, but were not able to get any benefit from the government over the years.
"This time around, the government has recognised the contribution made by the people of Eastern Highlands and has made a decision to allow free equity to be given to the people and the provincial government for shareholding up to 20% for that project and another 20% to the people of Morobe who host the Wafi-Golpu gold mine."
Duma assured that the state guarantee would be signed soon, following which the project developer and KCHL will approach the Eastern Highlands and Morobe provincial governments and the landowners to sign the benefit sharing agreements. The project will follow a build, transfer, and own agreement, which will allow the developer to spend £520 million to recover investments and then transfer ownership to PNG Power, which will own 60%. The remaining balance will be owned by the Eastern Highlands and Morobe provincial governments and the landowners.
He said:
"It is a build, transfer and own agreement that will enable the developer to spend about £520 million to recover investment and then transfer ownership to PNG Power which will own only 60% and the Eastern Highlands and Morobe provincial governments and the landowners will own the balance."
This project is set to be the first jointly-owned project between the government and people under the build, transfer program.
